MCQOPTIONS
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MCQOPTIONS
This section includes 79 Mcqs, each offering curated multiple-choice questions to sharpen your Information systems and engineering economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
A company purchased an industrial fork-lift for $75,000 in year 0. The company expects to use it for the next 7 years after which it plans to sell it for $10,000. The estimated gross income and expenses excluding depreciation for the first year are given below. The fork-lift will be depreciated according to a 5-year MACRS.:Determine the average tax rate applicable in the first year of operation, using the current corporate tax rate schedule. |
| A. | 0.1875 |
| B. | 0.1731 |
| C. | 0.25 |
| D. | 0.15 |
| Answer» C. 0.25 | |
| 2. |
24. As per section 30, which expenditure incurred for |
| A. | a. rent, rates and taxes |
| B. | b. insurance of building |
| C. | c. repairs of building |
| D. | d. capital expenditure |
| Answer» E. | |
| 3. |
51. XYZ Ltd is engaged in production of textile |
| A. | a. rs.` 2,92,500 |
| B. | b. rs.`4,92,500 |
| C. | c. rs.` 3,92,500 88 |
| D. | d. rs.` 3,52,500 |
| Answer» C. c. rs.` 3,92,500 88 | |
| 4. |
33. _______Rate of depreciation chargeable on |
| A. | a. 5% |
| B. | b. 10% |
| C. | c. 100% |
| D. | d. 40% |
| Answer» E. | |
| 5. |
47. DS acquired a building for Rs. ` 15 lakh in June, |
| A. | a. rs.` 1,50,000 |
| B. | b. rs.` 75,000 |
| C. | c. rs.` 37,500 |
| D. | d. rs.` 1,21,500 |
| Answer» D. d. rs.` 1,21,500 | |
| 6. |
31. The transfer of one or more undertakings as a |
| A. | a. lump sum sale |
| B. | b. slump sale |
| C. | c. aggregate sale |
| D. | d. total sale |
| Answer» C. c. aggregate sale | |
| 7. |
What effect would have on the break-even point and expected profit if there is an increase in financing cost? |
| A. | (decrease, decrease) |
| B. | (increase, decrease) |
| C. | (increase, increase) |
| D. | (decrease, increase) |
| Answer» C. (increase, increase) | |
| 8. |
25. Group of assets falling within a class of assets |
| A. | a. group of assets |
| B. | b. block of assets |
| C. | c. set of assets |
| D. | d. none of these |
| Answer» C. c. set of assets | |
| 9. |
A new business was set up on15-11-2008 and |
| A. | 15-11-2008 to 31-3-2009 |
| B. | 1-12-2008 to 31-3-2009 |
| C. | 2008-2009 |
| D. | none of the above |
| Answer» B. 1-12-2008 to 31-3-2009 | |
| 10. |
27. Depreciation available, if asset is used for less |
| A. | a. 50% |
| B. | b. 20% |
| C. | c. 100% |
| D. | d)15% |
| Answer» B. b. 20% | |
| 11. |
30. If the machinery is purchased on 4th October, |
| A. | a. 60% |
| B. | b. 7.5% |
| C. | c. 15% |
| D. | d. 10% |
| Answer» C. c. 15% | |
| 12. |
34. Rate of depreciation chargeable on temporary |
| A. | a. 40% |
| B. | b. 10% |
| C. | c. 100% |
| D. | d.50% |
| Answer» B. b. 10% | |
| 13. |
28. If the Plant & Machinery is used for less than |
| A. | a. 7.5% |
| B. | b. 15% |
| C. | c. 20 |
| D. | d. 10% |
| Answer» B. b. 15% | |
| 14. |
A person leaves India permanently on |
| A. | 2007-08 |
| B. | 2008-09 |
| C. | 2009-10 |
| D. | none of the above |
| Answer» C. 2009-10 | |
| 15. |
What effect would have on the break-even point and expected profit if there is an increase in fixed cost? |
| A. | (decrease, decrease) |
| B. | (increase, decrease) |
| C. | (increase, increase) |
| D. | (decrease, decrease) |
| Answer» C. (increase, increase) | |
| 16. |
A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need renovating every 30 years at a cost of $1 million. Annual repairs and maintenance are estimated to be |
| A. | 3579806 |
| B. | 3877482 |
| C. | 4301205 |
| D. | 3360343 |
| Answer» C. 4301205 | |
| 17. |
A couple wants to save for their daughter’s college expense. The daughter will enter college 8 years from now and she will need |
| A. | 11945 |
| B. | 11838 |
| C. | 12538 |
| D. | 12142 |
| Answer» C. 12538 | |
| 18. |
What effect would have on the break-even point and expected profit if there is an increase in sales expense? |
| A. | (increase, increase) |
| B. | (decrease, decrease) |
| C. | (increase, decrease) |
| D. | (decrease, decrease) |
| Answer» D. (decrease, decrease) | |
| 19. |
An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years. |
| A. | 82000 |
| B. | 90000 |
| C. | 64000 |
| D. | 60000 |
| Answer» D. 60000 | |
| 20. |
28. If the Plant & Machinery is used for less than 180 days in the year of its acquisition, then, |
| A. | a. 7.5% |
| B. | b. 15% |
| C. | c. 20 |
| D. | d. 10% |
| Answer» B. b. 15% | |
| 21. |
For an industrial undertaking fulfilling the conditions, additional depreciation in respect |
| A. | rs.75,000 |
| B. | rs.1,50,000 |
| C. | rs.1,00,000 |
| D. | none of the above |
| Answer» D. none of the above | |
| 22. |
A manufacturing company is considering the purchase of a new CNC lathe, which will cost $60,000 and has an annual maintenance cost of |
| A. | 135928 |
| B. | 132275 |
| C. | 114487 |
| D. | 72275 |
| Answer» C. 114487 | |
| 23. |
You are purchasing an automobile priced at $20,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly installments for five years. What is the constant dollar value (value at the time of financing) of the 36th payment of this loan, if the general inflation rate is 5% compounded monthly? |
| A. | 361.91 |
| B. | 383.66 |
| C. | 444.89 |
| D. | 396.02 |
| Answer» C. 444.89 | |
| 24. |
If you experience a 6 % annual inflation, how long does it take to see the purchasing power being reduced in half? |
| A. | 13 years |
| B. | 10 years |
| C. | 12 years |
| D. | 11years |
| Answer» D. 11years | |
| 25. |
The CPI for 2000 was 171.2 and the projected CPI for 2008 is 220. What is the general inflation rate over the last 8 years? |
| A. | 3.65% |
| B. | 6.1% |
| C. | 3.18% |
| D. | 2.83% |
| Answer» D. 2.83% | |
| 26. |
Constant (real) dollars reflect constant purchasing power independent of the passage of time |
| A. | true |
| B. | false |
| Answer» B. false | |
| 27. |
Find the capitalized equivalent worth for the project cash flow series at an interest rate of 10%. |
| A. | ce(10%) ⇓ = ⇓ $1,753 |
| B. | ce(10%) ⇓ = ⇓ $1,548 |
| C. | ce(10%) ⇓ = ⇓ $1,500 |
| D. | ce(10%) ⇓ = ⇓ $1,476 |
| Answer» C. ce(10%) ⇓ = ⇓ $1,500 | |
| 28. |
Find the net present worth of the following cash flow series at an interest rate of 10% |
| A. | $550 < pw(10%) ≤ $600 |
| B. | $600 < pw(10%) ≤ $650 |
| C. | $500 < pw(10%) ≤ $550 |
| D. | $650 < pw(10%) ≤ $700 |
| Answer» C. $500 < pw(10%) ≤ $550 | |
| 29. |
9. The process of copying files to a CD-ROM is known as |
| A. | (1) burning |
| B. | (2) zipping |
| C. | (3) digitizing |
| D. | (4) ripping |
| Answer» B. (2) zipping | |
| 30. |
Money has a time value because its purchasing power changes over time (inflation). |
| A. | true |
| B. | false |
| Answer» B. false | |
| 31. |
Marginal revenue must exceed marginal cost, in order to carry out a profitable increase of operations |
| A. | true |
| B. | false |
| Answer» B. false | |
| 32. |
47. DS acquired a building for Rs. ` 15 lakh in June, 2016 in addition to cost of land beneath the building |
| A. | a. rs.` 1,50,000 |
| B. | b. rs.` 75,000 |
| C. | c. rs.` 37,500 |
| D. | d. rs.` 1,21,500 |
| Answer» D. d. rs.` 1,21,500 | |
| 33. |
What effect would have on the break-even point and expected profit if there is an increase in unit price? |
| A. | (increase, decrease) |
| B. | (decrease, decrease) |
| C. | (increase, increase) |
| D. | (decrease, increase) |
| Answer» C. (increase, increase) | |
| 34. |
What effect would have on the break-even point and expected profit if there is an increase in labor cost? |
| A. | (decrease, decrease) |
| B. | (decrease, decrease) |
| C. | (increase, decrease) |
| D. | (increase, increase) |
| Answer» D. (increase, increase) | |
| 35. |
_______ is a person registered with the Registrar |
| A. | operator |
| B. | introducer |
| C. | enrolling agency |
| D. | agency |
| Answer» C. enrolling agency | |
| 36. |
What is the process of capturing resident data |
| A. | authentication |
| B. | enrolment |
| C. | identification |
| D. | presentatio n |
| Answer» C. identification | |
| 37. |
_____________is responsible to conduct the |
| A. | introducer |
| B. | enrolment agency |
| C. | testing and certification agency |
| D. | registrar |
| Answer» D. registrar | |
| 38. |
__________ is a certified personnel employed by |
| A. | enrolment operator |
| B. | enrolment supervisor |
| C. | introducer |
| D. | both 1 & 2 |
| Answer» C. introducer | |
| 39. |
The Verifier/Certifier is the personnel appointed |
| A. | operator |
| B. | introducer |
| C. | registrars |
| D. | enrolling agency |
| Answer» D. enrolling agency | |
| 40. |
Who among the following ensures that only trained |
| A. | uidai |
| B. | operator |
| C. | supervisor |
| D. | enrolment agency |
| Answer» E. | |
| 41. |
_____ is any entity authorised or recognised by |
| A. | introducer |
| B. | enrolling agency |
| C. | agency |
| D. | registrar |
| Answer» E. | |
| 42. |
_________is the place where the Aadhaar |
| A. | enrolment center |
| B. | exam center |
| C. | hospital |
| D. | school |
| Answer» B. exam center | |
| 43. |
F dollars at the end of period N is equal to a single sum P dollars now, if your earning power is measured in terms of interest rate i. |
| A. | true |
| B. | false |
| Answer» B. false | |
| 44. |
Which of the following contact numbers can a |
| A. | 1947 |
| B. | 2009 |
| C. | 140 |
| D. | 108 |
| Answer» B. 2009 | |
| 45. |
Enrolment Identification Number (EID) |
| A. | 10 |
| B. | 12 |
| C. | 15 |
| D. | 28 |
| Answer» E. | |
| 46. |
Resident is an individual who has resided in |
| A. | 32 |
| B. | 61 |
| C. | 123 |
| D. | 182 |
| Answer» E. | |
| 47. |
Record date of birth of the resident, indicating day, month, and ___________ in the relevant field. |
| A. | initial |
| B. | surname |
| C. | year |
| D. | name |
| Answer» D. name | |
| 48. |
The factors of time and uncertainty are the defining aspects of any engineering economic decisions |
| A. | true |
| B. | false |
| Answer» B. false | |
| 49. |
Which must be accomplished first by the entrepreneur or leader? |
| A. | the design of a rational organisation structure |
| B. | generating profits |
| C. | making viable the concept for which the organisation was founded |
| D. | establishing policies that assure consistency of activities |
| Answer» D. establishing policies that assure consistency of activities | |
| 50. |
When setting key objectives, managers first seek to articulate |
| A. | results that will achieve the earnings per share target of the external market analysts |
| B. | results that can be achieved with modest commitment of incremental resources |
| C. | mission consistent measurable results to be achieved within a specified future time frame |
| D. | sales forecasts that will generate sufficient revenue to increase global market share |
| Answer» D. sales forecasts that will generate sufficient revenue to increase global market share | |